Circuit City Unveils Plans to Exit
Appliance Business, Take Charges

By

Evan RamstadStaff Reporter of The Wall Street Journal

Updated July 26, 2000 2:29 am ET

Circuit City Stores Inc. said it would stop selling appliances and undertake a $1.2 billion, three-year overhaul of its 573-store chain, shedding outdated sales practices and devoting more space to swiftly changing consumer-electronics products. The retailer's shares plunged 20% on the news to a 52-week low.

Executives made the decision after calculating that slumping sales of refrigerators, dishwashers and other appliances during the past six weeks would send Circuit City's fiscal second-quarter profit below last year's level...